Description
Netflix and Blockbuster are two major players in the movie rental business. Their core business has been built around providing consumers with movie rental services. With time, movie production and viewing technology has been changing with the advance in technology. In this case study, the intense strategy war between Netflix and Blockbuster comes to the fore.
Theory
There are different theories that can be used to analyze the marketing strategies taken by companies. The most important theory in marketing is game theory. Game theory postulates that firms are rational utility maximizers (Dominici, 2011). This means that most companies will put efforts in achieving the outcome that is most favorable and that will increase their sales. According to Dominici (2011) this theory also argues that their rivals will take same strategies in replying to what firms are doing.